GBP/USD Price Forecast – GBP Range Bound Near 1.29 Handle Amid Lack of High Impact Headlines

Colin First
Updated

GBPUSD pair is on consolidative price action near 1.29 handle as political proceedings in UK is well in line with investor expectations. Both Brexit vote and No-Confidence vote against PM May saw outcome as predicted, Brexit vote in house of commons was overwhelmingly against PM May’s deal while PM May won the confidence vote against her as labor party lacked the number of votes required to oust PM May from her position as Prime Minister. Moving forward PM May is expected to hold cross party meeting to discuss future proceedings related Brexit and hopefully begin discussion about plan B in case they are going forward with exiting EU as planned at end of March 2019.

Focus On Cross Party Talks For Breakout Hints

Investors now look at GBP with caution as uncertainties seep into market once again post key events. PM May has until Monday to submit another brexit deal, but EU is unlikely to provide any major concessions or agree to a new deal in the meanwhile. Given that EU has already began preparing for a no-deal exit scenario, parliament session on Monday could begin discussion of how to proceed in face of no-deal exit scenario. Given lack of high impact data in the meanwhile, unless there is a trigger than can help push GBP back above 1.29 handle, GBPUSD pair could fall back to weekly lows by time trading session closes for the week. However the outcome of latest cross party talks could provide breakout trigger ahead of week’s close. As of writing this article, GBPUSD pair is trading at 1.2868 down by 0.12% on the day.

On release front today, UK calendar has no major release while US calendar is schedule to release Philadelphia Fed Manufacturing Index, New home sales, Building Permits, Housing stars & Goods trade balance data. When looking from technical perspective, the pair shows signs of neutral momentum as hourly intra-day charts see RSI and Stochastic momentum indicators move steady near the mid line. To the downside a breach below key support levels of 1.2840 and 1.2804 will result in sharp fall to lower half of 1.26 handle while breach in resistance at 1.2900 and 1.2930 would signal unhindered bullish price action in near future.

This article was originally posted on FX Empire

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